OTCPK:NGKI.F

Stock Analysis Report

Executive Summary

NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan and internationally.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has NGK Insulators's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NGKI.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

NGKI.F

7.2%

US Machinery

5.3%

US Market


1 Year Return

n/a

NGKI.F

-22.4%

US Machinery

-10.7%

US Market

Return vs Industry: Insufficient data to determine how NGKI.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how NGKI.F performed against the US Market.


Shareholder returns

NGKI.FIndustryMarket
7 Day0%7.2%5.3%
30 Day0%-19.0%-13.6%
90 Dayn/a-29.4%-19.8%
1 Yearn/a-20.1%-22.4%-8.9%-10.7%
3 Year-24.6%-24.6%0.4%-6.9%15.5%8.0%
5 Year-7.0%-7.0%21.8%6.4%35.2%20.4%

Price Volatility Vs. Market

How volatile is NGK Insulators's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NGK Insulators undervalued compared to its fair value and its price relative to the market?

14.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NGKI.F ($16.63) is trading above our estimate of fair value ($14.02)

Significantly Below Fair Value: NGKI.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NGKI.F is good value based on its PE Ratio (14.8x) compared to the Machinery industry average (15.6x).

PE vs Market: NGKI.F is poor value based on its PE Ratio (14.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: NGKI.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NGKI.F is good value based on its PB Ratio (1x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

How is NGK Insulators forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGKI.F's forecast earnings growth (12% per year) is above the savings rate (1.7%).

Earnings vs Market: NGKI.F's earnings (12% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: NGKI.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: NGKI.F's revenue (4.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NGKI.F's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NGKI.F's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has NGK Insulators performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NGKI.F has high quality earnings.

Growing Profit Margin: NGKI.F's current net profit margins (7%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: NGKI.F's earnings have declined by -5.3% per year over the past 5 years.

Accelerating Growth: NGKI.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NGKI.F had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Machinery industry average (-2%).


Return on Equity

High ROE: NGKI.F's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is NGK Insulators's financial position?


Financial Position Analysis

Short Term Liabilities: NGKI.F's short term assets (¥405.0B) exceed its short term liabilities (¥112.7B).

Long Term Liabilities: NGKI.F's short term assets (¥405.0B) exceed its long term liabilities (¥249.7B).


Debt to Equity History and Analysis

Debt Level: NGKI.F's debt to equity ratio (47.5%) is considered high.

Reducing Debt: NGKI.F's debt to equity ratio has increased from 37.1% to 47.5% over the past 5 years.

Debt Coverage: NGKI.F's debt is well covered by operating cash flow (23.9%).

Interest Coverage: NGKI.F's interest payments on its debt are well covered by EBIT (52.5x coverage).


Balance Sheet

Inventory Level: NGKI.F has a high level of physical assets or inventory.

Debt Coverage by Assets: NGKI.F's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is NGK Insulators's current dividend yield, its reliability and sustainability?

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NGKI.F's dividend (3.44%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: NGKI.F's dividend (3.44%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: NGKI.F's dividends per share have been stable in the past 10 years.

Growing Dividend: NGKI.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.1%), NGKI.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Taku Oshima (63yo)

5.83s

Tenure

JP¥108,000,000

Compensation

Mr. Taku Oshima has been the President and Representative Director of NGK Insulators, Ltd. since June 27, 2014. Mr. Oshima served as a Senior Vice President of NGK Insulators, Ltd. until June 27, 2014 and  ...


CEO Compensation Analysis

Compensation vs Market: Taku's total compensation ($USD999.43K) is below average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Taku's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Taku Oshima
President & Representative Director5.83yrsJP¥108.00m0.0032% ¥131.7k
Hideaki Shindo
VP & GM of Finance Departmentno datano datano data
Tadaaki Yamada
Senior VP & GM of HR Departmentno datano datano data
Yukihisa Takeuchi
Executive VP4.83yrsno data0.0032% ¥131.7k
Susumu Sakabe
Senior VPno datano data0.0038% ¥158.0k
Ryohei Iwasaki
Directorno datano data0.0032% ¥131.7k
Hiroshi Kanie
Executive VP & Directorno datano data0.0032% ¥131.7k
Shuhei Ishikawa
Senior VPno datano data0.0035% ¥145.0k
Hiroshi Kurachi
Senior VP and General Manager of Sensor Div. & Ceramic Products Business Groupno datano datano data
Takaya Teshima
Senior VP & Group Executive of Process Technology Business Group3.75yrsno datano data

4.9yrs

Average Tenure

63yo

Average Age

Experienced Management: NGKI.F's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Taku Oshima
President & Representative Director5.83yrsJP¥108.00m0.0032% ¥131.7k
Yukihisa Takeuchi
Executive VP4.83yrsno data0.0032% ¥131.7k
Susumu Sakabe
Senior VPno datano data0.0038% ¥158.0k
Ryohei Iwasaki
Directorno datano data0.0032% ¥131.7k
Hiroshi Kanie
Executive VP & Directorno datano data0.0032% ¥131.7k
Shuhei Ishikawa
Senior VPno datano data0.0035% ¥145.0k
Atsushi Matsuda
Senior VP1.83yrsno data0.0016% ¥65.9k
Chiaki Niwa
Senior VPno datano data0.0019% ¥79.2k
Nobumitsu Saji
Director & Senior VPno datano data0.0016% ¥65.9k
Hiroyuki Kamano
Outside Directorno datano data0.00032% ¥13.3k

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: NGKI.F's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NGK Insulators, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NGK Insulators, Ltd.
  • Ticker: NGKI.F
  • Exchange: OTCPK
  • Founded: 1919
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥448.456b
  • Listing Market Cap: JP¥4.168b
  • Shares outstanding: 316.48m
  • Website: https://www.ngk.co.jp

Number of Employees


Location

  • NGK Insulators, Ltd.
  • 2-56, Suda-cho
  • Mizuho
  • Nagoya
  • Aichi
  • 467-8530
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5333TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NGKI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NGIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan and internationally. It operates through Power Business, Ceramic Products Business, Electronics Business, and Process Technology Business segments. The company offers insulators and NAS batteries; HONEYCERAM, a ceramic substrates for automotive catalytic converters; energy-efficient products, including diesel particulate filters and gasoline particulate filters; and NOx sensors, which measures nitrogen oxide concentration in automobile exhaust. It also provides metal-related products, such as beryllium copper products and copper-nickel-tin products; and electronic components, including piezoelectric micro-actuators, bonded wafers for electronic devices, and other products, as well as EnerCera, a chip-type ceramic secondary battery. In addition, the company offers ceramics for semiconductor manufacturing equipment; and industrial process products, such as heating devices, kilns, refractories, ceramic membranes, separators, corrosion-resistant equipment, and radioactive waste treatment systems, as well as provides smart solutions for environmental protection and energy conservation. NGK Insulators, Ltd. was founded in 1919 and is headquartered in Nagoya, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 07:27
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.